Was it that Hamilton denied that factions might have their own desires, so that they, unlike real persons, do not require protection of (the merely metaphorical) 'freedom to pursue their own happiness'? Not at all. Indeed, his view that groups are infected with 'a poison of spirit' that causes them to act with less 'rectitude and disinterestedness' than individual persons, surely requires the existence of corporate purposes, strategies and wills.
But if there are general wills, what has them must resemble individual persons in being more or less free, more or less autonomous. Now, it is hard to deny that, all else equal, more liberty and autonomy, more opportunities for successful free choices, is an unalloyed prudential good. (The more good, the better!) But an understanding of that fact will move one to recognize that the main point of government is not, as Hamilton thought, to constrain the passions of men (or factions), but rather to maximize successful choices. Such maximization requires the precise deciphering of what is wanted by both persons and factions so that the utmost can be done to bring those states of affairs into existence.
In the case of social choices, let us call the methods for such precise deciphering and subsequent faithful endeavors to obtain what is wanted 'fair democratic procedures.' It will follow that the only restraints that are absolutely fundamental to a praiseworthy polity are those that are necessary to limit any activity—by person, institution, faction, or the government itself—that might serve to restrict or pervert the operation of fair democratic procedures.
